CLEP Practice Questions Flashcards
Regional K-Mart stores are selling a specific shirt for $9.99. This method was selected because store managers believe that customers react better to these types of prices. This type of pricing may be categorized as:
Odd-Even Pricing
When using odd-even pricing, the marketer sets prices that end in certain numbers. These numbers are either odd or even based on what the consumer thinks they should be.
Which of the following is not a marketing objective?
product objectives price objectives channels of distribution objectives promotion objectives technical design objectives
Technical Design Objectives
Technical design objectives are not part of the marketers objectives. The marketing manager must help decide which products best suit the company’s missions, determine which channels of distribution are the best fit for the company, what type of promotions the company will engage in, and what price the company will place on the product.
Which act deals with deceptive advertising, selling practices, and deceptive pricing?
The Federal Trade Commission Act deals with unfair methods of competition.
The use of a name, term, symbol, design, or a combination thereof that may or may not be registered is called:
A Brand
Individual ranging is used to separate brands. It helps the consumer avoid confusion of the products offered for sale by a company for business.
Packaging includes:
protection product identification containment promotion All of the above
All Of Them
Which of the following are products used to produce other products?
Specialty goods Convenience products Emergency goods Industrial products Consumer products
Industrial products are bought and sold with the purpose of building or manufacturing other products to be sold. Specialty products are goods that the consumer will use and will spend time and effort to purchase. Convenience products are consumer products and are purchased without much time and effort. Emergency goods are consumer products that are needed immediately. Consumer products are purchased by the final consumer and are not used to manufacture other products.
When a consumer experiences cognitive dissonance, they:
- may seek additional information to confirm their decision.
- may be experiencing uncertainty about their purchase decision.
- may purchase another product next time.
- may have doubts that lead to tension.
- All of the above.
All Of Them
Transportation provides which of the following utilities?
possession utility place utility time utility 1 and 2 None of the above
Possession and Place Utilities
Transportation adds value to a marketing strategy, but also contains a cost.
Which of the following is not a step in the five-step marketing research process?
Problem definition Interpreting the data Solving the problem Analyzing the solution Writing the proposal
Writing the proposal & Interpreting the data
Explanation of Answer:
The five-step process includes the steps that should be undertaken to complete the research and solve the problem. It is not part of the process in and of itself.
A majority of small companies
may use outside research specialists depend on sales people or managers to conduct the research they do usually do not have separate marketing departments can afford a reliable and dependable marketing information system
All Of These
Which of the following is not part of the marketing mix?
promotion price planning product channels of distribution
Planning
Explanation of Answer:
Planning is a necessary function of marketing, but it is not part of the marketing mix. To build a successful marketing strategy a marketer depends on the effective combination of using the elements that make up the marketing mix.
Reciprocity means
you buy my product and I'll buy yours I'll buy from you no matter what either buy from me or I'll ruin your product's name buy from me and I'll give you a discount None of the above
you buy my product and I’ll buy yours
Explanation of Answer:
Reciprocity means “If you scratch my back, then I’ll scratch yours.”
When designing a research study, the researcher must make sure that the study actually measures what it is supposed to. This is known as:
Validity
Validity means that the study actually measures what it is supposed to measure.
Which of the following is the worst choice when transporting a product such as stones?
truck rail air water All of the above are poor choices
Air
Air is an expensive and inefficient transportation method when shipping the products such as rocks or stones.
Failure of a new product is usually caused by all the following except:
poor timing bad execution of the marketing mix existence of "protocol" too small of a target market poor promotion and display
Existence of “Protocol”
Protocol refers to the customers need for the product. If the need exists, then the product is more likely to succeed rather then fail.
John wants to figure out the mark down of a desk he is selling for $100.00 with a marked down dollar amount of $31.00. What percentage would he come up with?
3.7% 15% 17% 28% 31%
31%
Explanation of Answer:
The amount of the markdown is divided by the new selling price, therefore it should be calculated as 31/100 which returns 31%.
What is the cost at retail of a product that sells for $400.00 and has a markdown percent of 40%?
$120.00 $180.00 $240.00 $300.00 $360.00
$240
Explanation of Answer:
Because Retail Selling Price = Cost - (Cost * Markdown Percent)
or even easier
Retail Selling Price = Cost * (1 - Markdown Percent)
Therefore, Price = 400 * (1 - .4) or 400 * .6 yielding $240.00.
Wal-Mart’s buying office just purchased leather belts for $30.00 each. They want a 20% markup at retail on the belts. What retail price should they charge?
$35.00 $36.50 $37.50 $39.00 The price cannot be determined.
$37.50
Explanation of Answer:
To calculate the Retail Sales Price, you must divide $30.00(Cost) by 100% - 20%(Markup) returning $37.50.
What is the markup percent based on cost, when the cost is $1,000.00 and the markup is $500.00?
25% 50% 75% 100% 33.3%
50%
Explanation of Answer:
To find the markup percent on cost, you must divide the amount of markup by the cost. The formula in this situation would be $500/$1,000.00 = 50%.
Suzanne wants to start giving tennis lessons to children, and needs to determine the cost in selling price she should charge for lessons. Her friend told her that the markup percent on cost should be 15% and that the amount of markup should be $17.00. What is her cost in selling price?
cost = $100.00; selling price = $25.00 cost = $100.00; selling price = $48.55 cost = $13.00; selling price = $38.00 cost = $113.33; selling price = $130.33 cost = $113.33; selling price = $166.66
cost = $113.33; selling price = $130.33
Explanation of Answer:
First we will need to calculate the cost. The formula needed to calculate this is: Markup Percent on Cost * Cost = Amount of Markup. When we plug the numbers in, we have: .15 * Cost = $17. This gives us $113.33. Now we can calculate the selling price by setting it equal to Selling Price = Cost + Markup, which gives us: Selling Price = $113.33 + .15($113.33) or $130.33.
Craftsman tools sold by Sears is an example of:
a family brand
A product is known as a family brand when the manufacturer also owns the sales force.
Toilet paper is an example of which of the following types of products?
impulse heterogeneous staple emergency specialty
Staple
A staple product is in product which has purchased on a regular basis.
A wholesaler that carries a wide variety of non-perishable items such as furniture, hardware, electronics, etc. is called a
rack jobber specialty wholesaler single-line wholesaler limited-function wholesaler general merchandise wholesaler Blank Image
General Wholesaler
General merchandise wholesalers were developed to serve retailers that carry a wide variety of non-perishable items.
Price fixing falls under which act?
Lanham Act Sherman Act Robinson-Patman Act Unfair Trade Practice Act Magnuson-Moss Act
Sherman Act
The Sherman Anti-Trust Act covers price fixing.
What functions or activities do wholesalers provide?
store inventory supply capital reduced credit risk provide market information All Of The Above
All of the above
Explanation of Answer:
Wholesalers store inventory reducing a producers inventory levels, supply capital to reduce the producers need for working capital, reduce credit risk by selling to customers the wholesaler knows, and provides market information as a buyer and seller.
During the introduction phase of the product life cycle, the primary goal is informing customers about the product. This promotion is intended to build the demand. This type of demand is known as:
tertiary demand secondary demand final demand primary demand selective demand
Primary Demand
When building primary demand, the goal is to build demand for a product rather than a name brand.
Which of the following are more likely to be early adopters?
Those who are distrusted by their peers. Those who tend to be old. Those who are often opinion leaders. Those who are conservative. Those who are the majority.
Opinion Leaders
Explanation of Answer:
Opinion leaders usually tend to be early adopters. Distrusted by their peers is also correct by not is correct as Opinion Leaders.
A reference group is important because it may influence one’s purchase because
they're part of middle-class America. having a Rolls Royce is considered a status symbol. an opinion leader is a person who influences others in the group. people make comparisons between themselves and others, and trying to imitate others purchasing decisions. they are members of the same social class.
people make comparisons between themselves and others, and trying to imitate others purchasing decisions.
People tend to compare themselves to others in their peer group. Because of this they will imitate others buying decisions.
Railroads are successful because they can handle large quantities. This allows them to transport goods at what price?
The railroads are successful in transferring goods at cost of $0.03 to $0.04 per ton because they deal in large quantities.
Income that is left after taxes that one can make payments on necessities is called:
Disposable Income
Disposable income is income left after paying taxes. This can be used to make necessary expenditures such as housing and car payments.
A measure of output of the whole economy and the total market value of goods and services produced in a year in the United States is called:
gross domestic product
The gross domestic product is a measure of output of the entire economy and the total market value of goods and services for the United States.
Buying specialists are called:
Purchasing agents are people that specialize in buying.
When gathering research one must interpret the results. Of the following which requires the most care in interpreting the results?
mail surveys telephone surveys personal interview surveys random sampling all of the above
All of the Above
All types of research require great care in interpreting the results.
Which of the following is the best medium for a marketer that needs to target specific individuals? Blank Image radio direct mail television billboards newspaper
Direct mail allows the marketer to target specific individuals by sending information directly to the potential customer.
Which of the following is the best medium to demonstrate a product to a large audience? Blank Image radio direct mail television newspaper magazine
Television allows the marketer to demonstrate a product to many individuals at a given time.
Advertising belongs to which part of the marketing mix? Blank Image product price place promotion perception
Promotion is the idea of communication between the buyer and the seller with the hopes of influencing the buyer’s attitudes and behaviors. This is also known as advertising.
What is the selling price on cost of an item that costs $10.00 and has a markup percent on cost of 40%?
$14.00
Selling price = cost + markup in the formula used. This gives a selling price of $10.00 * .4 resulting in $14.00.
